Online Reporter
Ray Bande
Senior Reporter
STATE-OWNED diamond miner, Zimbabwe Consolidated Diamond Company (ZCDC), is cautiously optimistic about its future after a recent successful sale injected much-needed cash flow to sustain operations.
The company has endured a difficult six months, grappling with depressed diamond prices, shifting consumer preferences, and the growing popularity of lab-grown diamonds — pressures compounded by ongoing geopolitical tensions in the Middle East, The Manica Post has learned.
These challenges have strained ZCDC’s finances, leading to delayed salary payments and difficulties in meeting other obligations.
The surge in lab-grown diamonds has particularly disrupted demand for natural stones, driving prices downward.
Official data shows that in 2024, international diamond prices averaged US$25,15 per carat, down from US$28,84 in 2023, and far below the 2018 peak of US$74.
The volatility in global diamond markets has reverberated across the industry, forcing mine closures and downsizing among major producers worldwide. ZCDC, operating under Zimbabwe’s sovereign wealth fund, Mutapa Investment Fund (MIF), has not been spared.
In response, the company initiated a staff rationalisation programme last year to align costs with prevailing market conditions.
In a statement, ZCDC acknowledged that the diamond mining value chain has faced persistent headwinds over the past four years, citing geopolitical instability, declining prices, and evolving consumer habits as key factors. Despite these challenges, the company hopes that recent developments will mark the beginning of a more stable period for its operations.
“The diamond value chain has experienced unprecedented challenges in recent times. Diamond miners are now faced with the stark reality that “the diamonds are forever” slogan is no more.
“The company is now engaged in serious engagements with all relevant stakeholders to keep the business running. ZCDC is now the only diamond mine operating following the closure of Anjin and Murowa.
“As you may be aware, we conduct auctions of rough diamonds on both the local and international market. Under our current marketing arrangements, foreign sales are conducted in Dubai, but unfortunately, geopolitical tensions in the Middle East have resulted in some instability in Dubai that affected scheduled sales.
“This setback has had serious ripple effects on the business, but both management and the board are engaged, and a recent successful sale will release necessary cash flows for continuing operations. The company will continue to explore avenues to grow the business and maximise shareholder value,” reads part of the statement.
Lab grown diamonds remain the biggest threat to the business, and only cost efficiencies and a move to kimberlites will be key to the survival of the business in the face of the obtaining market challenges specifically targeting the lower end of the market goods.
Large high quality natural diamonds remain rare and in demand, hence ZCDC’s kimberlite exploration target.
The unfavourable operating environment has seen some local diamond miners such as RioZim-owned Murowa Diamond and Anjin, closing shop.
This coupled with the closure of big mines across the globe might see a supply shortage-led recovery in prices in the medium term.
Meanwhile, Dubai Multi Commodities Centre (DMCC) executive chairman, Mr Sultan Ahmed Bin Sulayem, has given his thumbs up on the quality of diamonds mined from Zimbabwe and the region following the shipment of over 500 000 carats of the precious stones from ZCDC.
ZCDC recently engaged the Dubai-based Trans-Atlantic Gem Sales (TAGS) as its second international tender house mandated to facilitate the auctioning of its rough diamonds.
Currently, ZCDC conducts international diamonds sales through two channels, Taurum Group and TAGS.
Local diamond producers are required by law to reserve 10 percent of their production for local buyers.
The Minerals Marketing Corporation of Zimbabwe plays a critical role in ensuring that Zimbabwe’s minerals which include diamonds achieve optimal value on the international market.
Mr Sulayem recently posted on X (formerly Twitter) that he had met with TAGS chief operating officer, Mr Paul Duncombe during his recent visit to the company’s facilities at Almas Tower where they were hosting a sale of over 500 000 carats of original Zimbabwean mine production.
“As one of the most active participants in the Dubai Diamond Exchange (DDE), TAGS remains a cornerstone of our precious stones ecosystem, consistently delivering the scale, transparency and professionalism that global buyers and suppliers expect,” said Mr Sulayem.
“Whilst we witnessed a high level of attendance from specialist manufacturers at the current event featuring Zimbabwean goods, we also discussed the sustained appetite for high-quality rough diamonds, as evidenced by the strong activity and prices achieved at TAGS’ recent tenders. Preparations are already well underway for their next sale in April, which will feature an impressive selection of high-quality rough diamonds from Southern Africa, including several exceptional single stones and fancy colour diamonds.”
Trans-Atlantic Gem Sales (TAGS) operates across five strategic locations in three key diamond-producing and trading countries: the United Arab Emirates, South Africa and Angola. The company’s headquarters and primary tender facility are based in Dubai, UAE — now the world’s leading rough diamond trading hub.
ZCDC is currently operating two open pit operations in Chiadzwa and Chimanimani.
The company began operations in 2016 after the Government ordered the closure of mining companies in Chiadzwa and Chimanimani, citing accountability issues and potential revenue losses.
“Seeing the engine room of the diamond trade operating at such high capacity was a fitting reminder of where this industry has anchored itself. Since becoming the world’s leading rough diamond trading hub in 2021, Dubai has continued to strengthen its position at the centre of the global diamond trade, with more than 1,06 billion carats of rough and polished diamonds traded through the emirate over the past five years,” added Mr Sulayem.
“In an era of shifting supply chains and evolving trade corridors, the reliability of partners like TAGS is precisely what sustains that position. Dubai does not simply participate in the global diamond trade. It sets the terms for it.”
Trade between Zimbabwe and the UAE has improved over the past five years, with gold and diamonds constituting the bulk of the minerals shipped to the region.
Official figures from the Zimbabwe’s statistical agency show that gold and rough diamonds are some of the top exports to the United Arab Emirates.
